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What will happen in Argentina’s real estate market? Will prices go up or down? Is Buenos Aires still a hotspot for foreign investors? How is Argentina’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Argentina, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Argentina’s real estate market will grow by 3% annually until 2029
Argentina's real estate market is on track to grow by 3% annually until 2029.
Foreign investors from the U.S., Spain, and the Netherlands are flocking to Argentina, drawn by favorable exchange rates and competitive property prices. This influx is steadily pushing up property values, making it a hot spot for international buyers.
The Argentine government is making it easier for locals to buy homes by introducing policies that improve access to credit. This has led to a noticeable increase in property sales, giving the market a much-needed boost. The growing middle class in Argentina is also fueling demand, as more people are eager to own homes or invest in rental properties.
In Buenos Aires, the country's largest city, rapid urbanization is a key factor. The city's population is on the rise, which is driving up the demand for both residential and commercial spaces. This urban growth is not just about numbers; it's about the increasing need for modern infrastructure that enhances property values.
Infrastructure improvements in major cities are making properties more appealing to buyers. These enhancements are not just cosmetic; they are transforming the urban landscape, making it more attractive for both local and international investors.
With these dynamics at play, Argentina's real estate market is poised for steady growth, offering opportunities for those looking to invest in a promising market.
Sources: Statista, World Population Review
2) Mortgages will become more common in Argentina
Argentina is seeing a surge in homeownership interest thanks to urbanization and a growing middle class.
With more people wanting to own homes, the property values are climbing, making it a great time for mortgages to take off. Under President Javier Milei, interest rates have dropped, making mortgages more accessible. For instance, Banco Ciudad has received 11,000 mortgage applications since April 2024, and Banco Nación is set to disburse $4 billion in mortgages over the next four years.
The government is also pushing for more homeownership by boosting access to credit, which has led to a rise in property sales. The Argentine economy is stabilizing with lower inflation rates, making mortgages more appealing. This economic stability is crucial for the mortgage market to grow.
Inflation-adjusted mortgage schemes, like UVA loans, are helping people manage payments despite economic ups and downs. This innovation is making mortgages more accessible, allowing more Argentinians to afford homes. The real estate market is expected to grow at a 3% annual rate until 2029, supporting the trend of increasing mortgage commonality.
These changes are setting the stage for mortgages to become a regular part of the Argentine housing market, offering more people the chance to own their homes.
Sources: Statista, Trading Economics
We made this infographic to show you how property prices in Argentina compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) More Argentinians will use Bitcoin to pay rent
Argentina is seeing a surge in Bitcoin adoption as people look for alternatives to their unstable currency.
With inflation soaring to 276% in 2023, many Argentinians are turning to Bitcoin for stability. This shift is not just about personal savings; it's becoming a part of everyday life. Businesses are increasingly accepting Bitcoin, making it easier for people to use it for daily transactions. The government's tight grip on foreign currency has nudged people even more towards cryptocurrencies, which offer a sense of security and control.
In the real estate market, Bitcoin is making waves. A notable example is a rental agreement in Rosario where the tenant pays rent in Bitcoin. This isn't just a one-off; it's part of a growing trend where landlords are open to digital currency. Such moves are reshaping how people think about money and property in Argentina.
Tools like the ByBit card are making Bitcoin transactions smoother and more accessible. With plans for a cryptocurrency ATM in 2025, using Bitcoin will become even more convenient. These developments are crucial as they make digital currency a practical option for more people.
Bitcoin's role as a hedge against inflation is becoming more pronounced. As inflation rates are expected to stay high, albeit slightly lower at 35%-46% by 2025, Bitcoin's appeal grows. People are looking for ways to protect their wealth, and Bitcoin offers a promising solution.
In Argentina, the shift towards Bitcoin is not just a trend; it's becoming a part of the financial landscape. As more people and businesses embrace it, Bitcoin is poised to play a significant role in the country's economy.
Sources: The Dales Report, Cryptonomist, BitDegree News
4) Buenos Aires will need 6 years to balance its property oversupply
In Buenos Aires, the property market is grappling with a huge oversupply.
With over 163,000 real estate units available, only a tiny fraction, about 1.57%, are actually being sold. This sluggish pace means it could take six years to clear the current inventory, a stark contrast to the usual two-year turnover.
One factor dragging this out is the drop in real property prices. While nominal prices saw a slight uptick in 2024, inflation has eroded their real value, making properties less appealing to potential buyers.
Adding to the woes is Argentina's economic climate. The country's real GDP took a hit, contracting by 3.5% in 2024. This downturn has squeezed people's purchasing power, making it tougher for them to invest in real estate.
These economic challenges are dampening demand, which only worsens the oversupply issue. The market's slow movement is a reflection of these intertwined factors.
For those considering buying property in Buenos Aires, understanding these dynamics is crucial. The current landscape offers opportunities but also requires careful navigation.
Sources: Global Property Guide, World Bank
5) Demand for modern, smaller homes in Argentina will rise
In Argentina, modern and smaller homes are becoming the go-to choice for many buyers.
Young buyers are leading this trend, drawn to the convenience and low-maintenance lifestyle these homes offer. They want efficiency, and smaller homes fit the bill perfectly. The urban population is large and dynamic, with many people living in smaller households, which naturally leads to a preference for more manageable living spaces.
Demographic shifts are also a big factor. With more people living in smaller households, the demand for compact living spaces is on the rise. The economic landscape is also making these homes more appealing. The repeal of the rent control law has made housing more accessible and affordable, with real rental costs dropping significantly when adjusted for inflation.
Sustainability is another key driver. There's a growing interest in eco-friendly buildings, and modern homes often come with energy-efficient systems. This not only appeals to environmentally conscious buyers but also helps reduce long-term costs. Rising costs of land and construction materials are pushing buyers towards smaller, more efficient home designs.
These homes are not just about size; they're about smart design. With land and construction costs climbing, smaller homes offer a more affordable and attractive option for many. They provide a balance of style, efficiency, and sustainability that resonates with today's buyers.
In a market where every square meter counts, modern, smaller homes are meeting the needs of a changing demographic. They offer a lifestyle that aligns with the values and priorities of a new generation of homeowners.
Sources: CEIC Data, Coatings World
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6) Argentina's inflation in 2025 will range from 18% to 47%
In 2025, Argentina's inflation is expected to be between 18% and 47%.
Argentina has a history of high and volatile inflation rates, with an average annual rate of 45% since January 2019. This trend continued with a Consumer Price Index (CPI) growth of 193.0% year-over-year in October 2024. Such fluctuations can make it tricky for potential property buyers to predict future costs.
President Javier Milei's administration has been working on economic policies to tackle inflation. They projected a decrease in annual inflation to 104.4% by the end of 2024 and further down to 18.3% by December 2025. However, the sharp devaluation of the peso from 365 to 800 pesos to the dollar in 2023 has kept inflation high, affecting purchasing power.
Argentina's central bank has faced challenges like "fiscal dominance," where a growing public debt or fiscal deficit leads to increased inflation. The central bank's decision to lower real interest rates to deeply negative territory has further fueled inflation by encouraging consumers to spend or convert their savings to dollars.
For those considering buying property, understanding these economic dynamics is crucial. The peso's devaluation and high inflation rates can impact property values and mortgage rates. It's essential to keep an eye on how these factors evolve, as they can significantly affect investment decisions.
Sources: Buenos Aires Times, Americas Quarterly, CEIC Data
7) Investment strategies in Argentina will focus on Airbnb and short-term rentals
Argentina's tourism boom is reshaping its real estate market.
In 2023, over 1.3 million foreign tourists flocked to Argentina, marking an 18.8% increase from the previous year. This surge has fueled a growing demand for short-term rentals, with platforms like Airbnb becoming increasingly popular.
By November 2023, tourist revenue hit $4.5 billion, surpassing pre-pandemic figures. This upward trend continued into 2024, underscoring the lucrative potential of short-term rental investments in Argentina.
In bustling cities such as Buenos Aires, the Airbnb market is thriving. The capital alone boasts 29,335 Airbnb listings, thanks to investor-friendly regulations and high occupancy rates, making it a hotspot for property investors.
Investors are drawn to these urban areas not just for their lenient rules but also for the substantial revenue generated from short-term stays. This makes cities like Buenos Aires particularly appealing for those looking to capitalize on the tourism wave.
Sources: Go With Guide, Buenos Aires Times, Airbtics
8) Property transactions in Argentina will likely exceed 5,000 soon
The real estate market in Argentina, especially in Buenos Aires, is booming.
In April 2024, the city saw a 32.2% jump in property purchase deeds compared to the previous year, with 3,636 registrations. By December, sales had soared to 4,946, marking a 47.3% increase from July 2023 and a 16.9% rise from summer 2024. This upward trend suggests that the number of property transactions will likely surpass 5,000 in the coming months.
Foreign buyers from the U.S., Spain, and the Netherlands are flocking to Argentina, drawn by favorable exchange rates and competitive prices. This influx is reshaping the market, making it more dynamic and competitive. The presence of these international investors is a game-changer, pushing local buyers to act quickly.
Government actions have also played a part. The repeal of the Rental Law and Executive Order 70/2023 have made the environment more inviting for property ownership. These changes, along with a more stable economy, have boosted investor confidence. Even with high inflation, lower interest rates have made mortgages more accessible, encouraging more transactions.
Exchange rates are a big draw for foreign buyers, leading to increased demand and rising property values. In high-demand areas, buyers are now paying closer to asking prices due to fierce competition. This trend is reshaping the market dynamics, making it a seller's market.
Sources: National Geographic, Encyclopedia Britannica, Agriculture.com
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Argentina. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Property transactions in Argentina will be dominated by online platforms
In Argentina, 87.2% of the population was online in 2023, and this number is expected to grow.
With more people online, e-commerce in Argentina hit $28 billion, showing a shift towards digital transactions. This trend is making Argentinians more comfortable with buying and selling online, including real estate.
Platforms like Mercado Libre are now the go-to for property searches, with 8 out of 10 Argentinians using them. Real estate agencies are upping their online game to keep up with this digital shift.
In Buenos Aires, property sales jumped by 47.3% from July 2023 to the end of 2024, largely thanks to online platforms. Agencies using Mercado Ads saw a big boost in visibility, proving the power of online marketing.
Online tools like virtual tours and contactless transactions are becoming popular because they save time and money. With more tech and internet access in cities, PropTech solutions are on the rise, making property searches easier.
The PropTech market in Argentina is set to be worth over $300 million by 2029, fueled by investments and government support. This is pushing more innovation in the real estate sector.
Online platforms offer a smooth and clear experience, which is why they're catching on. Social media is buzzing with stories of people using these platforms, showing a clear move to digital.
Sources: Digital 2023: Argentina, Argentina Real Estate Trends, Argentina PropTech Market Overview, Argentina E-commerce Market Data
10) Rental prices will likely slow and align with inflation rates
In Argentina, rental prices are expected to slow down and may align with inflation rates.
One reason for this is the rising vacancy rates in rental properties. For instance, in 2023, the office real estate in Macrocentro had a 37 percent vacancy rate, which means more rental units are available. This increase in supply can lead to more competitive pricing, helping to stabilize rental prices.
Another factor is the repeal of rent control laws in December 2023 by President Javier Milei. This change led to an immediate surge in rental supply. Previously, rent control laws had caused landlords to pull properties from the market, resulting in a 45% drop in rental availability. With the repeal, more properties became available, contributing to price stabilization.
Economic reports also highlight a slowdown in demand for rental properties. The Institute of Economic Research of the Cordoba Stock Exchange noted that after the repeal of rent controls, rental prices have stabilized, and listings have increased significantly. This trend is supported by historical data showing that during economic downturns, rental prices often align with inflation rates.
Given Argentina's high inflation rates, it's likely that rental prices might stabilize or even decrease to match inflation. This is a significant shift for potential property buyers, as the market becomes more predictable and less volatile.
Sources: Statista, Inter-American Law Review, Reason
11) Foreign investors will remain cautious due to high costs and taxes
Buying property in Argentina can be quite expensive for foreign investors.
In cities like Buenos Aires, property prices have soared, especially in upscale areas like Puerto Madero, where prices hit around $6,500 per square meter. This makes the initial investment quite steep, particularly for those who are cautious with their finances. Transaction costs and taxes can add up to 10% of the property's value, which includes realtor fees and city taxes. These extra costs quickly become a financial hurdle.
The process of buying property is not just costly but also complicated. The bureaucracy involved can be overwhelming, with numerous steps and paperwork that can deter even the most determined investors. This complexity adds to the hesitation for those who are careful about where they invest their money.
Argentina's economic situation adds another layer of uncertainty. Fluctuating exchange rates and high inflation have historically affected real estate values, making it hard to predict future returns. This economic instability is a significant concern for investors who prefer stable environments.
For those considering investing in Argentina, it's crucial to understand these challenges. High costs and taxes remain a major deterrent for cautious foreign investors, despite the potential for high returns. The financial and bureaucratic barriers, combined with economic unpredictability, make it a risky venture.
Sources: Statista, Argentina Real Estate Forecasts, Atlantic Council
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12) The rent gap between Buenos Aires neighborhoods will widen significantly
The rent gap between neighborhoods in Buenos Aires is set to grow even wider.
In popular areas like Puerto Madero, Palermo, and Recoleta, property values are soaring, pushing rental prices up. These neighborhoods are hot spots due to luxury housing projects and a limited number of homes, which naturally leads to higher prices.
Foreign investors are also making a big impact, especially in Palermo and Recoleta, where international buyers are snapping up properties, driving demand and prices even higher. Government policies have added fuel to the fire. Economic district programs are causing gentrification and pushing out lower-income residents, while the repeal of rent control laws in December 2023 has made more rental properties available in these sought-after areas.
Infrastructure upgrades are another factor. New transport links in San Telmo and hybrid workspaces in Puerto Madero have made these areas more appealing, leading to a spike in prices. Meanwhile, differences in public services and amenities between upscale areas like Puerto Madero and more budget-friendly ones like Lugano are also widening the rent gap.
In Buenos Aires, the disparity in rent prices is becoming more pronounced, with premium neighborhoods pulling further ahead of their more affordable counterparts. This trend is reshaping the city's real estate landscape, making it crucial for potential buyers to understand these dynamics.
Sources: Buenos Aires Times, Urban Displacement Project
13) Investors will focus on high-yield areas like Lugano to boost returns
Investors are eyeing Lugano for its impressive rental yield of 7.3%.
Compared to other parts of Argentina, where yields are around 4.77%, Lugano offers a significantly higher return on property investments. This makes it a standout choice for those looking to maximize their earnings.
Infrastructure improvements are another draw for investors. The local government is focused on urban renewal projects, which not only enhance the quality of life but also increase property values and rental yields.
As these infrastructure projects progress, Lugano's appeal as an investment destination is expected to grow. This ongoing development is a key factor in attracting more investors to the area.
Media coverage is also playing a role in highlighting Lugano as an emerging investment hotspot. This positive attention can lead to increased demand and rising property values, making it even more attractive for investors.
Successful real estate developments in Lugano further underscore its potential for growth and high returns. These developments are a testament to the area's promise as a lucrative investment opportunity.
Source: Numbeo
14) Demand for high-value properties will grow as buyers see them as safer long-term investments
In Argentina, the real estate market is shifting with a growing interest in high-value properties.
With the Argentine Peso's devaluation, foreign buyers find high-value properties more affordable, offering a chance for savings and potential returns. In uncertain times, real estate is a safe haven, and these properties are seen as stable investments.
The government has made it easier for foreign investors by repealing the Rural Land Law and cutting the transfer tax, simplifying the purchase process. These changes have made luxury properties more attractive to international buyers.
Media coverage often emphasizes the stability of high-value properties, especially in areas with high demand and limited supply. This attention, along with expert predictions of growth in the luxury market, has increased interest in these properties.
Both local and international buyers are now looking at high-value properties as a way to secure their financial future. The perception of these properties as safer investments is driving demand.
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.